i think inventory is effected first if we generating revenue through our operation, accodingly my first choice Inventory is correct answer instead of cash as per you. please explain

1 Answer(s)


Good point.
However inventory being affected is case by case scenario.
In cases like services companies, Infosys, CTS etc there is no inventory to be affected and hence cash gets affected.

So Inventory is case by case
But cash applies universally across industries.